Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1887-12-15
PRESIDENTS MESSAGE.
The Surplus and the Tariff the Only
Questions Tonchs6.
The Reports of Heals Of Executive ne.
partments and Former Messages
Referred to for Information
ON Other Subjects.

ON Other Subjects.
WASHINGTON. Dec. 6.-Following is the
full text OF President Cleveland's message
transmitted to Congress to-day:ss
TO THE CONGRESS OF THE UNITED STATES
You are confronted at the threshold of your
legislative duties, with condition of the
! NATIONAL FINANCES,
Which imperatively demands immediate and
careful consideration. The amount of money
annually exacted, through the operations oI
present laws, from the industries and neces
stiles of the people, largely exceed the sum
necessary to meet the expenses of the Govern
ment. When we consider that the theory OF
full enjoyment of all the fruits of his industry
and enterprise, with only such deduction
as may be his share towards the
careful and economical maintenance
of the government which protects
him, it is plain that the exaction of more than
this is indefensible extortion. and eulpable
betrayal of American fairness and Justice This
! wrong inflicted upon thosewhe bear the burden
! OF National taxation, like other wrongs multi.
plies brood OF evil consequences. The public
| treasury, which should only exist as conduit
! conveying the peoples tribute to its legitimate
/ objects OF expenditure, becomes boarding
! trade and the peoples use, thus Gripping our
National energies Suspending our country
| development. preventing investment in pro
/ ductive enterprise, threatening financial dis.
| turbance, and inviting schemes of public plum.
| der.
/
| together new: and it has more than once OF
/ late been submitted to the people representa-
| tives in Congress, who alone can apply a
| remedy. And yet the situation still continues.
| with aggravated incidents, more than ever
! presaging financial convulsion and widespre
disaster. 1t will not do to neglect this situation
! because its dangers are not now palpably inn
| minent and apparent. They exist none the
| less certainly, and await the unforeseen and
| unexpected occasion when suddenly they will
| On the 30th day of June, 1885, the excess OF
revenues over public expenditures, after com
Sinkng-Fund act, was ST. s59, 735.Sf during the
year ended June 30, 1886, such excess amounted
to $40 l05 81 20, and dur ng the year ended June
annual contributions to the sinking fund dur
ing the three years above specified amounting
in the aggregate to 13S 058, 1884, and deducted
from the surplus as stated, were made by call
ing in for that purpose outstanding three per
cent. bonds of the Government During the six
months prior to June 3d. 1887, the sur
plus revenue had grown SO large by
fepeadted thu accuuasions that it
sum of money needed by the people, would so
affect the business of the country that the sum
of s79, 100 of such surplus was applied to the
payment Of the principal and interest of the
three per cent. bonds still outstanding, and
which were then payable at the option Of the
financial affairs among the people still needing
relief, immediately after the 3Gth day of June,
1887, the remainder of the three per cent. bonds
and interest to the sum of sis ST.. 500. were
called in and applied to the sinking fund con-
tribution for the current fiscal year Notwith-
standing these operations of the Treasury
Department representations of distress in bust
ness circles not only continued, but increased,
and absolute peril seemed at hand In these
circumstances the contribution to the sinking
fund for the current fiscal year was at once
completed by the expenditure of s27,6S4, 293. SIS
in the purchase of Government bonds not yet
due, bearing four and four and half per cent.
interest, the premium paid thereupon 'averag-
ing about twenty-four per cent. for the former
n
to this the interest accrulng during the current
year upon the outstanding bonded indebted
ness of the Government was to some extent
anticipated, and banks selected as repositories
OF public money were permitted to somewhat
increase their deposits.
While the eXpedientS thus employed. to re-
lease to the people the money lying idle in the
treasury, served to avert Immediate danger,
our surplus revenues have continued to ac-
amounting on the first day of December to 1884,
25S7o1.l9, and estimated to reach the sum of
which date 1t is expected that this sum, added
to prior Accommodations. will swell the surplus
IN ting sreas9ry to sl4o.noe 600
such withdrawal from use of the peoples
circulating medium, our business community
may not in the near future be subjected
TO the same distress which was quite lately
produced from the same cause. And while the
functions of our National Treasury should be
few and simple. and while it's best condition
would be reached believe, by it's entire dis
connection with private business interests, yet
III
holds money uselessly subtracted from the
channels of trade, there seems to be reason for
the claim that some legitimate means should
be devised by the Government to restore in an
emergency, without waste or extravaganza
such money to it's place among the people
II such an emergency arises there
now exists clear and undoubted
executive power of relief Heretofore the
redemption of three per cent. bonds. which were
afforded means for the disbursement of the
e. cess of our revenue; but these bonds have
all been retired, and there are no bonds out
standing, the payment OF which we have the
right to insist upon The contribution to the
sinking fund, which furnishes the occasion for
expenditure in the purchase of bonds has been
already made for the current year, so that there
is no outlet in that direction.
In the present state of legislation the only
pretense ofany existing executive power to re-
store, at this time, any part of our surplus rev.
enues to the people by its expenditure, con-
slsts in the supposition that the Secretary of
the Treasury may enter the market and pur-
chase the bonds of the Government not yet due,
at rate of premium to be agreed upon.
The only provision of law from which such a
power could be derived is found in an appropri-
alton bill passed number OF years ago; and it
Is subject to the suspicion that it was intended
as temporary and limited In its application, in
stead of comforting a continuing discretion and
authority. No condition ought to exist which
would justify tie grant OF power to single
official. upon his Judgment of its necessity, to
withhold from or release to the business of the
people, in an unusual manner, money held in
the treasury, and thus affect, at his will
1t is deemed wise to lodge in the Secretary of
the Treasury the authority in the present iunct
ure to purchase bonds, it should be plainly
vested, and provided, as far as possible, with
such checks and limitations as will define this
official righl and discretion, and at the same
Tine relieve him OF undue responsibility.
In considering the question of purchasing
bonds means of restoring to circulation
the surplus money accumulatng in the treas
ury it should be borne in mind that premiums
must of course be paid upon such purchase
that there may be large part OF these bonds
chased at any price, and that com
binations among holders who are
willing to sell, may unreasonably
enhance the cost of such bonds to the Govern
ment. It has been suggested that the present
bonded debt might be refunded at less rate
of interest, and the difference between the old
and new security paid in cash, thus finding use
tor the surplus in the treasury. The success
of this plan, it is apparent must depend upon
bonds; and it is not entirely certain that the
inducement which must be OF | them would
result IN more financial ben the Govern
ment than the purchase of boa while the lat
ter proposition would reduce tee principal OF
the debt by actual payment, instead of extend
ing it.
the Government in banks throughout the coun-
try, for use by the people is, it seems to me,
exceedingly Objectionable in principle. eStab-
fishing too close relationship between the
operations of the Government Treasury and the
business Of the country, and too extensive
commingling of their money thus fostering an
unnatural reliance in private business upon
public funds II this scheme should be adopted |
it should only be done as a temporary expe-
dent to meet an urgent necessity. Legislative
and executive effort should generally be in the |
opposite direction. and should have tendency
to divorce, as much and as fast as /
can safely be done, the Treasury De- |
partment from private enterprise. OF course it /
is not expected that unnecessary and extraVa- /
CANT appropriations will be made for the pur- |
pose of avoiding the accumulation of an excess |
OF revenue. Such expenditure. besides the de-
moralization of all just conceptions OF public |
duty which it entails, stimulates habit OF |
reckless improvidence not in the least consist |
ut with the mission of our people or the high |
and benefcent purpose of our government